TEB - 30-Day Letter

The 30-day letter notifies the issuer of their right to appeal the changes proposed by the IRS.

After any technical review is complete, the examiner should prepare the relevant 30-day letter, as follows:

For Forms 8038, 8038-B, 8038-G, 8038-GC and 8038-TC, use Letter 4413, Notice of Proposed Adverse Determination Letter.

For Form 8038-R, use Letter 5684, TEB Arbitrage Claim Notification of Proposed Claim Disallowance.

For Form 8038-CP, use either Letter 5871, Proposed Adjustment to Credits under Section 6431 (Associated with an Appealed Bond Determination) or Letter 5871-A, TEB Proposed Adjustment to Credits under IRC 6431 (30-day letter).

Address all identified areas of noncompliance in the letter and attachments. Your group manager reviews, signs and approves the letter.

Mail the letter to the issuer and/or authorized representative via certified mail with a request for return receipt.

Update the status of the case to 13 after you mail the letter.

Keep a copy of the 30-day letter and attachments and the certified mail receipt in the case file.

Follow the bondholder referral procedures in IRM 4.81.7, Tax Exempt Bonds, Bondholder Identification and Referrals.

When an issuer receives the 30-day letter, the issuer may request an administrative appeal of the case to Appeals. If the issuer:

Doesn’t timely request an appeal in writing, follow the final adverse determination procedures in IRM 4.81.14.6, Final Adverse Determination.

Requests an extension of time to prepare a protest, you may grant up to an additional 30 days. Issue Letter 686 (DO), Extension of Time for Certain Actions, to notify the issuer in writing of the date by which the protest must be submitted. Grant further extension requests only if your group manager approves and the Program Manager agrees.

Timely requests an appeal, ensure the request meets the requirements of Rev. Proc. 2006-40, 2006-42 IRB 694 and Pub 5.

Submits a request that doesn’t meet the requirements, call the issuer and/or authorized representative and allow up to 30 days to perfect the request. Issue Letter 686 (DO), Extension of Time for Certain Actions, to notify the issuer in writing of the date by which the perfected request must be submitted.

After the issuer perfects the appeal request, follow these steps:

Review the request and prepare a rebuttal to the arguments the issuer raised. If no new arguments are raised, notate that in the rebuttal and affirm that our position hasn’t changed. In your rebuttal, address:

Only those statements, facts, or arguments the issuer made that weren’t completely addressed in the 30-day letter.

New arguments or facts the issuer raised.

If the protest contains new information or analysis of the issuer's position, notify the issuer that the new information submitted may change the case's outcome and requires further review and possible discussions before you transfer the case file to Appeals.

Since all unagreed protested cases are subject to TEB Technical mandatory review, request technical assistance before you issue the rebuttal.

You must mail the rebuttal to the issuer, but the issuer is not given an opportunity to respond to the rebuttal.

Completely address all statements, facts, and arguments discussed in the protest, then prepare Letter 5918, Protest Received Rebuttal/Transfer to Appeals, and mail to the issuer.

Prepare the case for closing per IRM 4.81.5.24.1, Case Closing Procedures for Examiners, and forward to your group manager.

Group manager:

Review the case for accuracy and completeness: confirm that the case file contains a valid protest, adequate rebuttal, printed copies of electronic RCCMS documents, the relevant determination, tax exposure calculation if applicable, adjustment or disallowance letter and Letter 5918 Appeals transfer letter.

Update the case to status 20 on RCCMS with disposal code 601 (add ARDI code 2 for claim denials) and transfer the case to the TEB Technical group responsible for mandatory review.

Ship the paper case file via Form 3210 to the reviewer identified by the TEB Technical group manager responsible for mandatory reviews.